DDUGKY

Section 8.1:

Overview of financial monitoring

DDUGKY

the financial pass through to the beneficiaries such as: a) The food
and transportation allowances, b) Post placement allowances and c)
Payment to trainers, master trainers and Q team members will only be
verified. This is expected to result in the audit of almost 70% of the
payments to PIAs. extracted from DDU-GKY guidelines
So focus is on the following cost through financial transactions recorded
and validated in PFMS:
Payment of entitlements to candidates are accurate and timely
Payment of salaries to trainers, master trainers and the Q team
members are accurate and timely, as they have critical impact on
the quality of training and employment as envisaged in the scheme
Other costs would be reviewed through the annual audit process by the
Annual Auditor as per Auditing Standards of ICAI.

Section 8.2:

Financial monitoring: Roles and

responsibilities of key agencies and actors

PIA

PIA OP Team:
PIA OP team (finance):
PIA Q Team:
Auditor for conducting:

DDUGKY

Monthly verification. Hereinafter referred as Periodical Auditor

Annual audit, financial audit for project closure and financial audit for orderly
closure of a project. Hereinafter referred as Annual Auditor

CTSA/SRLM

Verification of expenditure limited to disbursement of candidates entitlements,

payment to trainers, master trainers and Q team members, in line with the
guidelines.

Verification and review of the remarks reported by the periodic and annual auditor,
if any, and seek compliance

CTSA to recommend to MoRD for release of funds based on financial verification as

above. In addition to financial verification, physical verification will also be taken
into account for funds release as detailed in previous chapters and as per
approved checklist. In the case of SRLM, such recommendation would be internal
to the SRLM based on financial verification
(contd)

Section 8.2:

Financial monitoring: Roles and responsibilities

of key agencies and actors (contd)

DDUGKY

Thematic audit along with the MoRD empanelled auditor as per

instructions of MoRD

MoRD
Review of expenditure limited to disbursement of candidates
entitlements, payment to trainers, master trainers and Q team
members
Ensure that CTSA verifies and reviews remarks reported by the periodic
and annual auditor, if any, and presents a compliance report submitted
by the PIA along with its remarks
Conduct of thematic audit

Section 8.3:

DDUGKY

Project fund management

8.3.1 Operation of project account
8.3.1.1 Opening of bank account and mapping on PFMS
Maintaining of project account: PIA should open only one
dedicated Project Account and is not permitted to maintain multiple
Project Accounts except during the interim period of change in the
Project Account, following the prescribed instructions in this SOP.
Nature of account:

Savings Account subject to RBI regulations and any other applicable

Banking Regulations.

Current Account subject to RBI regulations and any other applicable

Banking Regulations for PIA registered as non-section 8 Company under
Companies Act, 2013 (erstwhile Section 25 of Companies Act, 1956).

Name of the account: DDU-GKY-(short name of PIA/applicant PIA)short name of state-Project number (Note: A PIA should give serial
number to all projects sanctioned to it in the programme i.e. a
running number across all project sanction entities; and this will
reflect in the project number).
Refers to the Applicant PIA in a consortium

Section 8.3:

DDUGKY

Project fund management (contd)

8.3.2 Cash inflows to the Project Account

All funds released by CTSA for non AAP states/SRLM for AAP states

Interest earned from the project account, if any

Loans taken by PIA for the purpose of project: PIA is permitted to
bring funds, from its own sources or through the normal banking system,
into the Project Account as loan. In such a case, the PIA should only be
allowed to book repayment of principal amount as allowable expenditure
and not the interest.
CSR fund/fund from other sources: PIA to inform to the MoRD about this
through the CTSA/SRLM specifying the purpose for which the funds have
been received and utilized. PIA has to ensure that such funds received are
not classifiable as an offence under Chapter II of Prevention of Money
Laundering Act, 2002, as amended from time to time.

DDUGKY

Section 8.3:

Project fund management (contd)

8.3.3 Cash Outflows from the Project Account

8.3.3.1 Heads of expenditure

PFMS
code

Heads

Items to be booked

Training Costs

Trainers Salaries

Salaries of trainers and master

trainers working for the project
Salaries of Q team members
working for the project
i. Training cost, mobilization of
beneficiaries, curriculum, training
of trainers, utilities, infrastructure,
equipment, teaching aids, raw
materials, etc.

A1.1
A1.2

Q Team Salary

A1.3

Other Training Costs

ii. Assessment & certification

iii. Placement linkage
iv. MIS & Tracking, monitoring,
quality control
v. Any other expenditure could not
be booked under the heads

Section 8.3:

DDUGKY

Project fund management

(contd)
PFMS
code

Heads

A2

Boarding and Lodging

A2.1

State Headquarters

A2.2

District Headquarters

A2.3

Other Locations

A3

A4

One time travel cost

Food and To & Fro charges

Items to be booked

Expenditure on boarding & lodging

facilities provided to candidates

Cost on one time travel facilities

provided to candidates
Payment
for
transportation to
candidates

food
and
non-residential

Section 8.3:

Project fund management

(contd)
PFMS
code

Heads

A5

Post Placement Support

A5.1

Placement within district domicile

A5.2

Placement within state domicile

A5.3

Placement outside state domicile

A6

Tablet Computer

A7

Uniform

A8

Incentives

A8.1

Retention Support

A8.2

Career Progression

A8.3

Live Distance Learning

A8.4

Foreign Placement

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Items to be booked
Payment of post placement support
to placed candidates

Lease/rental/purchase cost tablet

computer for candidates
Cost
incurred
on
candidates
uniform
Incentives claimed by PIA on
achievement of A8.1 to A8.4

Section 8.3:

Project fund management

(contd)

DDUGKY

8.3.3.2 Booking of Expenditure

All transactions directly attributed to the project shall be paid through the project
account registered on PFMS except:
A trainer working on more than one project
A training centre where multiple projects are run simultaneously
Shared Q team resources
In all such cases one of the following course of action can be taken
The proportionate cost can be booked to the dedicated project account of
DDU GKY
Proportionate cost can be transferred from designated Project Account to
another bank account from which the full cost/ expenditure has been paid
PIA is allowed to book expenditure from the date of issue of sanction order. To
allow the expenditure under the project the following should be fulfilled:
Open a project account as per SI 8.3A: Instruction for opening of bank
account before booking of expenditure
Incur all expenditure through the project account only
Signing of the MoU by all the Authorised signatories

Section 8.3:

Project fund management

(contd)

DDUGKY

8.3.3.3 Imprest Management (Petty Cash Management)

PIA may pay in cash against expenditure not exceeding Rs. 40,000/- per month for
each of these cost centres (a) training centre, (b) residential facility and (c) project
state office. To facilitate imprest management, a PIA can maintain cash imprest with
a designated person at the cost centre. The exact amount of cash imprest is left to
discretion of a PIA within the cap of 40,000/- for each expenditure location.

Section 8.4:

Protocol for delivery of cash and non

cash entitlements
8.4.1 General procedures
The candidates are entitled to following financial
assistance:
Cash entitlements
Food and To and Fro Charges
Post Placement Support

Non cash entitlements

Boarding and lodging during training
Boarding and Lodging during OJT
One Time Travel Cost

DDUGKY

Section 8.4:

Protocol for delivery of cash and non

cash entitlements (contd)

DDUGKY

8.4.4 Payment of Post Placement Support

PPS
insta
lmen
t

Timeline

Amoun
t ()

Proofs
required
payment

for

1st
insta
lmen
t

To be paid within 7 days

of joining a job. PIA can
also pay in advance at
its own risk if the PIA
has confidence that the
candidate will join the
job.
10th of next calendar
month

1,000/-

Joining letter
employer.*

the

2nd
insta
lmen
t to
last
insta
lmen
t

1,000/-

from

Records
for
the
previous
month:*
Salary slip joint certificate
from the employer and
candidate on salary paid
and
transfer
payment
Bank
proof of take home pay

Section 8.4:

Protocol for delivery of cash and non

cash entitlements (contd)
8.4.5 One time travel cost
A lump sum financial assistance is provided to the candidates to
facilitate essential travel required under the program for the
following purposes:
From usual place of residence* to training centre (for residential
candidates only)
From training centre/ usual place of residence to OJT place
From OJT place to training centre if OJT is in the middle of
training programme
From OJT/Training centre to usual place of residence
From OJT/Training centre/usual place of residence to place of 1 st
employment
One time travel for emergencies from OJT/Training centre to
usual place of residence and back
( *Usual place of residence is normally where the candidate or his family
stays. However, if the family has shifted, a candidate can specify a different
place as the place of stay).

DDUGKY

Section 8.4:

Protocol for delivery of cash and non

cash entitlements (contd)

DDUGKY

Eligibility for travel is defined as follows:

Rail sleeper class of travel including tatkal charges.
Bus transport of any public sector undertaking
Private bus transport up to a maximum of twice the rail sleeper fare
If a PIA exercises options other than the above list, fare will be subjected to a
maximum of three times of the rail fare (if places are not connected by a rail line road
distance can be used for arriving at the rail fare)

In addition to the travel cost, food and boarding cost while in transit, a PIA would
be eligible to book the following expenditure under the head One Time Travel
Cost:
Agency charges: Agency charges as permitted or levied by government/public sector
organisations is admissible. If the booking is through private agencies equivalent service
charges is admissible
Service tax and education cess: Element of service tax, and education cess is
admissible
No cancellation charges are admissible. Cancellation charges, if any shall be borne by
PIA
All bookings should be managed by the PIA or an agent authorised by him.
All travel should be supported by a statement from the candidates and a travel ticket
or voucher
Expenditure incurred towards One Time Travel should be audited by the Periodical
Auditor at the time of release of instalments

Section 8.4:

Protocol for delivery of cash and non

cash entitlements (contd)

DDUGKY

8.4.6 Boarding and lodging facilities to the

candidates
Maximum amount a PIA can book under head - Boarding
and Lodging Facilities for candidates will not exceed the
amount specified in the DDU-GKY guidelines and the
sanction order.
PIA will be eligible to book expenditure incurred towards
Boarding and Lodging Facilities for candidates from the
following two options, whichever is lower:
Actual amount spent on boarding and lodging as per the
audited figures
Amount a PIA is entitled to receive based on attendance of
candidates in a residential centre. Procedure for calculation of
allowable amount based on attendance is explained below.

Section 8.4:

Protocol for delivery of cash and non

cash entitlements (contd)

DDUGKY

Attendance in the residential facilities

A residential place will have a separate geo tagged, time
stamped biometric attendance system
The attendance will be taken once in a day between 6 PM
and 10 PM
As sometimes candidates miss out on attendance for a
variety of reasons (some of the reasons are: go out of
station for short duration or in weekends, illness, forget to
mark the attendance etc.), a minimum of 75 % attendance
is compulsory to conclude that the candidate has availed
residential facilities

Section 8.4:

Protocol for delivery of cash and non

cash entitlements (contd)
8.4.7 Booking of expenditure incurred on uniform
Slab

Hours

Rate per trainee

Up to 1152

1000

>1152 hours

2000

DDUGKY

Section 8.5:

Payment of salaries to trainers,

Master Trainers and Q team members

DDUGKY

Verification of payment of salaries to trainers,

master trainers and Q team members
All details of payment such as payment due, amount
paid and delays in payment will be captured in PFMS.
In the interim PIA should develop a system on their
website to share the following information:
The actual payment due and the date the amount has to
be paid for a candidate
The amount paid and the date of payment to the
candidate along with proofs.
A calculation sheet indicating the individual cases of
underpayment and delayed payment along with a
summary statement.

Section 8.6:

Verification of Amount received as take home

salary in a candidates bank Account

DDUGKY

Take home salary paid to a candidate will be known

from one of the following:
Successfully completed bank transfer statement of the
employer,
bank statement of the employer with salary payment
transaction duly marked and certified by PIA
passbook entries with salary receipt transaction of the
candidate duly marked and certified by PIA

From the above data a PIA will prepare SF 8.6A:

Amount transferred to a candidates bank account as
take home pay as per the monthly verification process.
Periodic auditor will certify the statement and
CTSA/SRLM will verify and freeze it as per timelines and
steps given in monthly verification process.

Section 8.7:

DDUGKY

Protocol for asset management

Asset purchased under the project shall be classified under asset block as
specified by department of income tax. Assets purchased in a financial
year under each block not exceeding 10,000 can be written off in the
same year.

8.7.1 Asset permitted to be purchased under the project

A PIA can purchase the following assets without EC approval:
The assets given below even if asset block value exceeds Rs 10,000 in a
financial year:

Bio metric equipment

Fire extinguisher
CCTV camera and recording apparatus
Computers, printer, scanner and copier for office use
Projector
Training centre furniture for academic and non-academic areas e.g. chairs, table,
almirah, racks
Water dispenser
First aid kits

Any asset/s whose block value does not exceed 10,000 in a financial year
PIAs need not specify such assets in their project applications submitted to MoRD.

Section 8.7:

DDUGKY

Protocol for asset management

8.7.2 Assets requiring EC approval
All assets other than those specified above should be approved by EC of
SRLM/MoRD. Assets to be purchased should preferably be included in the
application and considered by EC at the time of project sanction.
For category A and B where tablet computer cost is approved by EC, it has to
be procured as per procedure of chapter 4.
8.7.3 Depreciation and amortization
Depreciation and amortization shall be charged as per the rates specified by
the Income Tax Act, 1961 as amended from time to time.
8.7.4 Disposal of assets
All assets, other than the Tablet computers, purchased under the project shall
be taken over by the PIA on its residual value before the closure financial
audit. The residual value, if any, will be adjusted against instalments due or
through a recovery, as the case maybe. However, Tablet computers are to be
disposed off through distribution among trainees (at zero cost) and as per the
detailed procedures notified in SI 8.7A: Procedures for procurement,
accounting, distribution and disposal of tablet computers, in this chapter.
Residual value is the book value of the asset after depreciating it as per
Income Tax Act.

Section 8.8:

DDUGKY

Training cost and incentive

payment

Training cost
Pre-defined Training Duration (refer to Table 1 of sub-section
3.2.2.4 of DDG GKY Guidelines)
SLAB

Rate
per Calculation (per Maximum
hour ()
hour)
Rate ()

A
B

Training
duration
(hrs)
576
1152

1728

13.6354

2304

11.5460

SLAB

Training
duration
(hrs)

E
F
G

577 to 1151
1153 to 1727
1729 to 2303

23.7778
16.625

Flexible training Duration

defined training duration

(13696)/576
13696
(1915219152
13696)/576
(2356223562
19152)/576
(2660226602
23562)/576
training
duration other

Incremental Rate per Calculation

hour ()
hour)
9.472222222
7.65625
5.277777778

than pre(per

(19152-13696)/576
(23562-19152)/576
(26602-23562)/576

Section 8.8:

Training cost and incentive payment

(contd)

DDUGKY

Incentives
Sl.
No.

Incentive category

Rate per
candidate
()

1.

Live distance training

500

2.

Counselling for trainees placed in foreign countries

3.

Career progression

5,000

4.

One year retention

3,000

10,000

Section 8.9:

Appointment of auditors
PIA is free to appoint one auditor for the role
Periodical Auditor and Annual Auditor, subject to
applicable regulations of the Institute of Chartered
Accountants of India (ICAI)

DDUGKY

Section 8.12:

DDUGKY

Thematic verification
Verification of books, accounts and records needs to be
conducted in accordance with the directions of MoRD

Section 8.14:

Financial management information

system
Discussed in PFMS and relevant sections

DDUGKY

DDUGKY

Thank you
DDUGKY-NIRD